Secondhand luxury marketplace The RealReal (NASDAQ: REAL) will be reporting results tomorrow afternoon. Here's what investors should know.
Last quarter The RealReal reported revenues of $133.2 million, down 6.7% year on year, beating analyst revenue expectations by 6.4%. It was a mixed quarter for the company, with GMV (Gross Merchandise Value) and revenue exceeding expectations, driven by higher-than-expected Average Order Values (Active Buyers and Number of Orders missed). Adjutsed EBITDA also beat. On the other hand, revenue guidance for next quarter missed Wall Street's estimates. For the full year, GMV and revenue guidance was lowered but Adjusted EBITDA was raised, signaling a more profitable business.The company reported 954,000 users, up 0.4% year on year.
Is The RealReal buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting The RealReal's revenue to decline 10.8% year on year to $142.5 million, a further deceleration on the 10% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at The RealReal's peers in the online marketplace segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Etsy delivered top-line growth of 4.3% year on year, beating analyst estimates by 1.8% and Remitly reported revenues up 38.6% year on year, exceeding estimates by 1.3%. Etsy traded down 4.3% on the results, and Remitly was up 11.6%.
Read our full analysis of Etsy's results here and Remitly's results here.
There has been positive sentiment among investors in the online marketplace segment, with the stocks up on average 3.8% over the last month. The RealReal is down 13.7% during the same time, and is heading into the earnings with analyst price target of $2.9, compared to share price of $1.7.
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